Savings

Savings

Whether you’re saving for something in the future or just for a ‘rainy day’, regular saving with your Credit Union is a good idea. At your credit union, you’re not just a customer, you’re a member of a successful financial co-operative.

Each share you hold in your credit union is equal to €1. You will need to hold a minimum savings of ten shares. Members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the credit union.

Savings are insured at no direct cost to the eligible member.

There are no hidden fees or transaction charges.

When your credit union declares a dividend at the end of its financial year, each share you hold for that year is eligible for a dividend.

The more shares you have, the greater the dividend you will receive.

You can withdraw your savings at any time provided they are not pledged as security on a loan. However, you are encouraged to keep your savings intact, so that:

They continue to earn a dividend.

They continue to benefit from the Life Savings Insurance protection.

Ways to Save

At First Choice Credit Union we offer the following savings account types.

Regular Share Accounts are available to all member types (Adult, Junior, Joint, Clubs & Societies, and Business’). No hidden transaction fees, covered by Life Savings Insurance provided by your CU at no cost to you the member.

Deposit Accounts are available to all members.

The maximum amount you may hold in savings with First Choice Credit Union is as follows:
Regular Share Accounts €100,000
Deposit Account €100,000

Nominations

This is a unique facility for credit union members. If you are over 16 years of age you can nominate who is to receive the property of your accounts with the credit union upon your death. Property includes shares, deposits and insurance proceeds.

This is of benefit if the member dies without leaving a will as the property left in the credit union will not have to pass through the sometimes timely intestacy process.

You may nominate a person(s) of choice to receive your property presently up to a maximum value of €23,000. Any amount in excess of this balance will form part of your estate.

You may change the details of your nomination as often as you like. A completed nomination must be signed and witnessed by a staff member or a member of the Board of Directors. Ask in the office and a staff member will help you complete the relevant form and witness your signature. The most recent nomination is the valid nomination.

A nomination is not revocable or variable by the terms of your will or by a codicil to your will.

The nominated property does not form part of a deceased person’s estate.

A nomination is automatically revoked when your nominee dies before you. In this case, you should consider completing a new nomination. If you do not, your property in the credit union may form part of your estate.

Where your personal circumstances change (e.g. marriage, divorce or separation) you should review your nomination at that time.

A nomination is automatically revoked by your subsequent marriage.

Deposit Guarantee Scheme

Eligible deposits in First Choice Credit Union Limited are protected by the Deposit Guarantee Scheme (“DGS”)(1)

(1) Your deposit is covered by a statutory Deposit Guarantee Scheme. If insolvency of your credit institution should occur, your eligible deposits would be repaid up to EUR 100 000.

(2) If a covered deposit is unavailable because a credit institution is unable to meet its financial obligations, depositors are repaid by a Deposit Guarantee Scheme. This repayment covers at maximum EUR 100 000 per credit institution. This means that all eligible deposits at the same credit institution are added up in order to determine the coverage level. If, for instance a depositor holds a savings account with EUR 90 000 and a current account with EUR 20 000, he or she will only be repaid EUR 100 000.

This method will also be applied if a credit institution operates under different trademarks. This means that all eligible deposits with one or more of these trademarks are in total covered up to EUR 100 000.

(3) In case of joint accounts, the limit of EUR 100 000 applies to each depositor.

However, deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature, without legal personality, are aggregated and treated as if made by a single depositor for the purpose of calculating the limit of EUR 100 000.

In some cases deposits are protected above EUR 100000. More information can be obtained under www.depositguarantee.ie

(4)Reimbursement

The responsible Deposit Guarantee Scheme is Deposit Guarantee Scheme, Central Bank of Ireland, PO Box 11517, Spencer Dock, North Wall Quay, Dublin 1, Tel: 1890 777777, Email: info@depositguarantee.ie It will repay your deposits (up to EUR 100 000 ) within 20 working days until 31 December 2018; within 15 working days from 1 January 2019 until 31

December 2020; within 10 working days from 1 January 2021 to 31 December 2023; and within 7 days from 1 January 2024 onwards, save where specific exceptions apply.

Where the repayable amount cannot be made available within seven working days depositors will be given access to an appropriate amount of their covered deposits to cover the cost of living within five working days of a request.

Access to the appropriate amount will only be made on the basis of data provided by the credit institution.

If you have not been repaid within these deadlines, you should contact the Deposit Guarantee Scheme since the time to claim reimbursement may be barred after a certain time limit. Further information can be obtained under www.depositguarantee.ie

Other important information

In general, all retail depositors and businesses are covered by Deposit Guarantee Schemes. Exceptions for certain deposits are stated on the website of the responsible Deposit Guarantee Scheme. Your credit institution will also inform you on request whether certain products are covered or not. If deposits are eligible, the credit institution shall also confirm this on the statement of account.

Tax Treatment of Dividends

From 1st January 2014 all credit union share dividend and deposit interest paid to members will be subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The only members who can be exempt are:

Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exemption, you must sign a self-declaration form DE1. This form is available in your credit union and is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.

Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association. Credit unions have no role in approving the exemption in these cases.

If you do not complete the self-declaration form, the credit union will be obliged to deduct DIRT from your dividend or interest. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible).